Bankruptcy.

Manawatu Herald, Volume III, Issue III, 26 March 1891, Page 2

Bankruptcy.

STATEMENT OF E. OSBORNE. At the first meeting of Mr E. Osborne's creditors it was decided to adjourn to Wellington, Mr Ray having so applied at the request of a number of creditors. Mr Osborne put in the following statement : — He began business in Foxton as a draper in 1881. He then had property in land and houses to the value of £800. He had no cash, but arranged with the Bank of Australasia for an overdraft up to £500. He took stock from time to time and included in his balance sheets the value of his real and leasehold properties, and the following were his credit balances: — August 1888 £1290 ; 1884, £1404 ; 1885, £1482 ; 1886, £1526 ; 1887, £1526 ; 1888, £1676; 1889, £1756; February, 1890, £2008 ; February, 1891, £1625. In December 1888 he joined partnership with Edward Giesen and William Macandrew and his father, as Flax-millers under the style of Osborne, Gieaen & Co. They erected a mill' at Titirangi, known as the Empress Mill. William Macandrew retired and took out his capital, and the capital then consisted ol £500, contributed as follows : — E. Giesen £300, the ihbtor £100, his father £100. At the stock taking in March 1887 Osborne, Giesen & Co owed the debtor £85, so that he had entered as an asset in the mill, the sum of £185. At his stocktaking in February 1890 Osborne, Giesen & Co owed him £804. This he entered in the balance sheet as of the value of £700. In 1890 Edward Giesen retired, leaving the debtor and his father, who traded as Osborne & Co. At the stocktaking in February 1891, Osborne & Co owed him £1345, so he had entered his asset in the mill at £1445, deducting this from the credit balance, the amount would be reduced to £180 In June 1890 he opened a branch shop at Sandon and in October found he had made a loss in it of £236. The flaxdressing business was not % success, and not understanding it, had left the management to Edward

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Giesen. The capital contributed was ifigunicieiit, and debts were incurred in establiSßing and working the mill which he found himself compelled to discharge. In this way the fiim became largely indebted to his oWjii shop business and it became very much hampered in consequer.ee. Edward Giesen retired early in 1890 and the debtor and his father gave him Promisory Notes extending Over 2 years for £200 and the partnership was dissolved. Sifice then he had endeavoured with the assistance^ his father to work the mill, b\H§®lMsn unable to make it suffiffljf&lr successful to replay the ad\mSft' i£:fi t^^'' df the 'Prtfcflisory Nofeff havo been paid, and those due amount to £I6i> VJ4M. / r He had made nothing out of the flax business. It has been a con* stant loss, and he .attributed his failure to advances out of his business, which he had been compelled to make to the mill.